The marriage of finance and technology has led to the development of the word FinTech. In recent research by autonomous.com, it has been forecasted that Artificial Intelligence or AI will help financial institutions (FIs) to save up to 22% of their operational costs by 2030. The remarkable part is that most of the leading FIs in the world are already using AI. A study puts it at 50% — which is remarkable. However, the way AI is growing by leaps and bounds, and considering that there are 50% more FIs worldwide that still have to adopt AI in their day-to-day operations, there is immense growth opportunity in this gamut.
The close and deep connection between AI and FinTech cannot be ignored. There are innumerable benefits that financial institutions can gain from FinTech and AI combo. Some of these are:
1. Data-driven decisions
One of the biggest advantages of integrating AI with the standard daily operations in the financial setup is handling the voluminous data and the use thereof in critical decision-making. AI makes all systems smarter and more intelligent. Therefore, AI enables systems to fetch relevant data at supersonic speed, offering officials requisite information within seconds. This feature helps in faster decision-making, saving time and costs thereof.
2. Personalized wealth management tips
One of the shortcomings of the conventional banking industry has been about offering customized options to customers. AI seamlessly integrates with the systems to offer personalized solutions and recommendations to customers based on their behavior and preferences. For example, by monitoring customer activities on smart wallets, users are offered relevant information to better their experiences. Thus, FinTech companies can look at enhancing customer engagement and achieving way better customer satisfaction.
3. Customer support
AI and chatbots are constantly being used in offering better customer support experiences to end-users. One of the basic use of AI has been its power-driven features to automate the back office, especially repetitive work. The technology has proved to be a success because it has helped banks and FIs to put their human resources into effective workflows, removing them from mundane and monotonous jobs. Also, FIs using AI in their daily workflows understand that human errors have been reduced largely by technology, making their processes efficient and effective.
4. AI is helping FIs in pre-empting fraudulent activities
When banks and FIs got automated, one crucial area of concern was the growing risks of fraudulent activities. Embedding AI in their systems helps them in detecting fraud in real-time. Bots and AI tools help analyze dubious patterns and raise the alarm internally. Customized software solutions can be created by software companies that help anticipate fraudulence and create a failsafe net to secure data and systems.
5. Intelligent automation of the underwriting process
FinTech companies that use AI, especially in the insurance sector, now have automated underwriting processes. Bots can now help customers in real-time by identifying the insurance requirements of the user. With automated underwriting, the process of insurance payout is expedited. The data can also be used for the early detection of diseases in insurance buyers.
Conclusion
The entire niche of FinTech and AI is moving at a fast speed. The potential of AI and FinTech is unfathomable. If you have any requirement of integrating the two, speak to experts at iBoss Tech Solutions.
